30547 – Anonymous Case History

Decision: Letter of Admonition

Keyword(s): Failure-to-Disclose-to-Firm; Client's Best Interest; Fiduciary Duty; Failure-to-Supervise

Standard(s) Violated: Article Article 3(g); Article 3(a); 6.1; 4.6; 5.1; 4.3; 6.5; 1.4

Matter Type(s): Employer-Investigation

Decision Date: 06/01/2018

Summary:

Whether a CFP^® professional (“Respondent”) violated CFP Board’s Standards of Professional Conduct when he: (1) failed to properly supervise subordinates, resulting in one subordinate being named as a beneficiary of several clients’ accounts, creating a conflict of interest; (2) was named as a beneficiary in several client accounts, in violation of firm policy; and (3) failed to disclose and obtain approval from his firm after he was named as a beneficiary of both client and non-client accounts.

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29005 – Anonymous Case History

Decision: Suspension

Keyword(s): Employer Policy Violation; Fiduciary Duty; Suitability; Disclosure to Clients

Standard(s) Violated: Article 4.6; 102; 1.4; 201; 5.1; 406; 606(b); 4.1; 4.4; 401(a); 606(a); 6.5; 2.2(a); 4.3

Matter Type(s): Other Professional Discipline

Decision Date: 11/20/2014

Summary: Whether a CFP® professional (“Respondent”) violated CFP Board’s Standards of Professional Conduct when she sold “C” shares to her clients not because they were suitable, but as a method of ensuring that she was paid for her advisory services, and failed to: 1) enter into written advisory agreements with her “C” share advisory clients; 2) provide written disclosures required by Part 2 of Form ADV to her “C” share advisory clients; and 3) provide a complete description of the share class options and fees of mutual funds to her “C” share advisory clients and failed to: 1) ensure that salespersons were making suitable “C” share investment recommendations; 2) enforce the RIA Manual requirement of a written advisory agreement for clients using “C” shares as an advisory fee; and 3) enforce the requirement of delivery of the Disclosure Document. Respondent also failed to reasonably supervise her salespersons by failing to ensure that salespersons were making suitable “C” share investment recommendations. Respondent also failed to report her suspension by State from acting in any principal or supervisory capacity for twelve months to CFP Board within 30 calendar days, in violation of Article 13.2 of the Disciplinary Rules and Procedures (“Disciplinary Rules”).

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